Truworths said diluted headline earnings per share for the 26 weeks to 25 December will decrease to between 380.6 cents and 397.9 cents per share, up to 6 percent lower than in the corresponding period in 2015.

The firm said new credit affordability assessment regulations - rules introduced by South Africa in 2015 that require banking statements and proof of income - weighed on sales.

South African clothing and furniture retailers rely heavily on in-store credit cards to boost sales in a sluggish economy.

Truworths said its total retail sales rose 21 percent to 10.2 billion rand ($756 million), but cash sales accounted for all of the growth, while credit sales remained unchanged.

"Increased pressure on consumers from rising inflation, especially in food prices, and a weak employment market characterised by job losses and soft real growth in incomes have also impacted the Group's performance," Truworths said in a statement.

The trading update was released after the close of trading on the JSE. ($1 = 13.4884 rand) (Reporting by TJ Strydom; editing by Joe Brock)